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Introduced Senate Bill (S)

DIGEST

Installment small loans. Authorizes a lender that is licensed by the department of financial institutions (department) to make small loans under the Uniform Consumer Credit Code (UCCC) to make installment small loans under the same license. Defines an "installment small loan" as a loan: (1) with a principal amount that is: (A) more than $50 and not more than $1,800; (B) fully amortizing; and (C) repayable in substantially equal and consecutive installments; (2) that has a term of not less than 112 days and not more than 180 days; and (3) in which the lender holds one or more checks Installment small loans. Authorizes a lender that is licensed by the department of financial institutions (department) to make small loans under the Uniform Consumer Credit Code (UCCC) to make installment small loans under the same license. Defines an "installment small loan" as a loan: (1) with a principal amount that is: (A) more than $50 and not more than $1,800; (B) fully amortizing; and (C) repayable in substantially equal and consecutive installments; (2) that has a term of not less than 112 days and not more than 180 days; and (3) in which the lender holds one or more checks of the borrower for a specific period, or receives the borrower's authorization to debit the borrower's account on one or more occasions for a specific period, before the lender deposits the check or debits the account. Specifies that provisions concerning: (1) required consumer disclosures; (2) business locations; and (3) surety bonds; in the UCCC chapter governing small loans also apply to installment small loans. Establishes a new chapter in the UCCC that establishes the following with respect to installment small loans: (1) An authorized finance charge of not more than $15 per $100 on the initial principal balance and on the principal balance outstanding during any installment period. (2) Permissible additional fees and charges. (3) Remedies and damages for violations by licensees and unlicensed persons. (4) Prohibited acts by a lender. ... View more